Varied parameter
Investment return (expected)
3% → 7%
Investment Return Comparison
Freelancer / Contractor in Cluj-Napoca · Fast-track independence
This page compares financial outcomes for a Freelancer / Contractor living in Cluj-Napoca, Romania, following the Fast-track independence life scenario.
A high-intensity saving and investing strategy aimed at reaching financial independence as early as possible. Strong outcomes require discipline, sacrifice, and tolerance for market risk.
Cluj-Napoca combines strong tech opportunities with a high quality of life.
The comparison focuses on how changing the Investment return (expected) influences long-term results, while all other assumptions remain constant.
Simulation Overview
Base scenario assumptions
- The simulation starts at age 30 and runs until age 65.
- The initial annual labor income is €21,780.
- Labor income grows annually at an average rate of 4%.
- A labor income tax rate of 10% is applied to gross earnings.
- The saving rate is set to 40%.
- Minimum annual living expenses are €10,350.
- Savings are invested with stochastic annual returns.
- The average annual return is 6%, with year-to-year variability.
- All values are expressed in real terms, assuming average annual inflation of 3%.
- The simulation includes stochastic life events such as unemployment, and health issue.
- These events may temporarily affect income, expenses, or net worth.
- Financial independence is defined as having net worth equal to 25 times annual expenses.
- Bankruptcy is triggered if net worth remains below €0 for 2 consecutive years.
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Scenario Comparison
Results are shown as a realistic range. P10 represents a pessimistic outcome, while P90 represents an optimistic outcome. Most simulations fall between these two values.
| Scenario | Median Net Worth | P10 Net Worth | P90 Net Worth | FI Probability | FI Median Age |
|---|---|---|---|---|---|
| 3% | 769,581 | 504,690 | 1,165,101 | 100% | 48 |
| 5% | 1,086,126 | 698,181 | 1,684,894 | 100% | 47 |
| 7% | 1,579,837 | 1,001,176 | 2,502,424 | 100% | 45 |
How Your Financial Life Evolves
These charts show how each scenario affects long-term outcomes, including expected wealth, downside risk, and the likelihood of achieving financial independence.
Net Worth Median
Net Worth Range
Fi Probability
Fi Median Age
